You can create ticket here.
Sometimes zerodha is allowing far otm sometimes it is restricting… it’s impossible to plan strategy
That depends on our OI level,not in our hands for now.
If I have long call hedged by short call at a far strike (bull call spread). I have seen that zerodha deducts margin from account from the loss in far call leg if market keeps going up.
@siva
Are the margins blocked by zerodha for positional FnO trades exactly equal to what NSE asks for and blocks in brokers account? Or do you block some additional margins as per your own RMS?
For eg. If a strategy requires 1L margin for Iron Condor, do you guys block 1.1L or 1.2 L etc. If yes, does it changes as per the perceived market volatility and risk as perceived by your own RMS?
Plz reply.
Asking, because I found out various brokers are blocking as per their own will.
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We block as per exchange, we also updates span files as and when exchanges releases them during the day.
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Request you to look in to ticket #20200715665413. This is for higher margin shown in my ledger for Tuesday EOD.
According to new margin rule, it should not have been that much. Margin blocked over there was far higher than what is shown Zerodha margin calculator.
I wrote all details in the ticket but your support person (Sanju JH), simply replies in one line saying its charged as per rules and closed the ticket.
I reopened ticket asking full details (break-up etc.).
And, if it ends up to be correct then Margin calculator is wrong and so is the balance showing mechanism in KITE dashboard.
Please take a look and let me know what and where I missed anything.
Thanks,
Sure, will get it checked tomorrow.
Thank you. Appreciate it
Hi @siva,
This has not been addressed yet. I am eager to know if I am missing anything when I am using margin calculator for calculating margin requirement for my hedged positions.
Appreciate your help on this.
Like I said, same hedged combination required far lesser margin with another broker (Samco).
That got me puzzled.
Thanks,
Margin calculator won’t show buy option premiums.
Also I have checked with team and was told margin is increased on eod span file, we show margins based on 3.30 span file, rarely there can be instances where margin may be increased on eod span, same was happened that day.
You are making me sound amateur.
[sorry for the long post. It had to be]
I do know that margin calculator won’t factor the buy side premiums. And also that I would receive the premium from sell side only the next day. If I had not considered these two, I would have expected further more margin to be available.
Can you please give individual answers to below questions and not a vague, blanket one?
- Let’s agree that span margin is increased from 3:30 to EOD. Will it be so drastically high that my margin available changes from +10% of capital to -37% of it?
- Are you also saying that even on the next day morning, margin calculator is going to show the margin according to previous day 3:30 span file, but the ledger is accurate reflecting EOD margin file?
Note: the margin calculator told me that the required margin was not that high next day, and the next and the next! - You say this is same across all brokers. But that was not the case. I spread my trades across different brokers. I this case, I can confidently quote Samco. I had exact same positions over there too. I mentioned that a few times.
Hence I requested the NSE span margin file used that particular day by you so that I can verify, in the ticket.
I don’t want to spam this useful informative thread. It would be great if I can get answers to these questions even in my ticket! I raised the same over there!
My gut feeling is that your way of blocking margin might be different for hedged position which has BUY side options that are far OTM (“outside allowed range” according to you). You might have simply discarded them and considered as if I was having naked SELL only.
Here my BUY side options are far OTM, but they are bought them when they were allowed in the trading platform.
I could be wrong, but I don’t see any other logic here.
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No, we just block as per NSE, anyhow we will check this again. @Nakul Can you please get this checked.
Phew, still no direct answer. nevermind. I will wait for reply.
Any Buy OTM that are not too close to the SELL are considered as ‘risky’ and hence there are very little margin benefits available.
Thank u for raising the issue Once I have also faced same issue , while initiating spread trade i found actual margin requirement was much higher than as shown by margin calculator.
hey @siva has anything changed in the hedged margin? i mean even if the market goes in your favor the blocked margin for 1 lot is close to 17k …few days back it used to fluctuate close to 13-14 k if the position is in favor , but this time it remains fixed at 16.5 - 17k… are you guys calculating wrt 25 or 20 (bank nifty)
Generally if market goes up so margins considering if span % remains same as span and exposure is % of total contract, you can message me your ID, will get it checked.
Work is going on, maybe in next 2 to 4 weeks.
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